Homework Help is Here – Start Your Trial Now!
Business
Accounting
Use the information provided below to prepare the Income Statement of Coastal Manufacturers for the year ended 31 December 2022 using the following methods:

Use the information provided below to prepare the Income Statement of Coastal Manufacturers for the year ended 31 December 2022 using the following methods:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please do not give solution in image format thanku
QUESTION 2 REQUIRED Use the information provided below to prepare the Income Statement of Coastal Manufacturers for the year ended 31 December 2022 using the following methods: 2.1 Variable costing 2.2 Absorption costing INFORMATION Coastal Manufacturers commenced operations on 02 January 2022 with the intention of producing 110 000 units. However, during 2022 Coastal Manufacturers produced only 100 000 units of the product. It sold 60% of the units produced at a selling price of R130 per unit and 20% of the units produced, at a selling price of R140 per unit. Direct materials cost, direct labour cost and variable manufacturing overhead costs amounted to R20, R10 and R8 per unit respectively. Fixed costs totalled R1 300 000 of which 60% was for manufacturing and 40% for administration and marketing. Other administration and marketing costs amounted to R21 per unit sold. Coastal Manufacturers had no raw materials or work in process inventories at the end of 2022.
Transcribed Image Text:QUESTION 2 REQUIRED Use the information provided below to prepare the Income Statement of Coastal Manufacturers for the year ended 31 December 2022 using the following methods: 2.1 Variable costing 2.2 Absorption costing INFORMATION Coastal Manufacturers commenced operations on 02 January 2022 with the intention of producing 110 000 units. However, during 2022 Coastal Manufacturers produced only 100 000 units of the product. It sold 60% of the units produced at a selling price of R130 per unit and 20% of the units produced, at a selling price of R140 per unit. Direct materials cost, direct labour cost and variable manufacturing overhead costs amounted to R20, R10 and R8 per unit respectively. Fixed costs totalled R1 300 000 of which 60% was for manufacturing and 40% for administration and marketing. Other administration and marketing costs amounted to R21 per unit sold. Coastal Manufacturers had no raw materials or work in process inventories at the end of 2022.
Expert Solution
steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS